Unions rally outside of the Statehouse for millionaires tax

David Levinsky @davidlevinsky

Thursday

Jun 13, 2019 at 7:26 PMJun 13, 2019 at 7:27 PM

Much of the rhetoric at the rally surrounded the proposed millionaires tax, which would raise the state’s top income tax rate on all earnings over $1 million, rather than the current threshold of $5 million.

TRENTON — Thousands of public employees and progressive advocates staged a loud and boisterous rally outside the Statehouse on Thursday, demanding lawmakers to support Gov. Phil Murphy’s proposed tax hike on millionaires.

But their chants and slogans seemed to fall on deaf ears as legislative leaders gave no indication of reconsidering their steadfast opposition to the proposed millionaires tax.

Neither Senate President Stephen Sweeney, nor Assembly Speaker Craig Coughlin commented on the rally and no lawmakers spoke or participated in the event, which was organized by the Communication Workers of America, the New Jersey Education Association and other public employee unions.

And during the busy legislative day, lawmakers voted to advance bills for controversial tax incentive programs that Murphy wants scrapped and replaced, as well as several other government reform measures being pushed by Sweeney.

Still, it must have been difficult for lawmakers to ignore the spectacle occurring outside their windows as more than 3,000 crowded outside the Statehouse Annex entrance and onto State Street, where a giant inflatable pig was displayed.

Much of the rhetoric at the rally surrounded the proposed millionaires tax, which would raise the state’s top income tax rate on all earnings over $1 million, rather than the current threshold of $5 million.

Murphy has made extending the limit a key part of his proposed state budget for the upcoming fiscal year, but Sweeney, Coughlin and other legislative leaders have rejected the proposed hike, arguing that state taxes are already too high and that additional increases could prompt more wealthy residents and businesses to flee the state.

Protesters countered that the wealthy have benefited from tax cuts during former Gov. Chris Christie’s two terms and from the federal tax overhaul approved by President Donald Trump and Republicans in Congress.

“The millionaires don’t need a break. We need a break!” shouted Tracy Stewart, a CWA leader at the protest.

Others at the rally blasted Sweeney’s proposed “Path to Progress” government reforms, a package of bills that call for school districts to consolidate and for municipalities to look for ways to share services in order to reduce property taxes.

But the most controversial measures in the package make benefit changes for public workers, including moving new employees and those with under 5 years of service into a hybrid pension plan, similar to a 401(k). Another bill in the package would merge the school employee health plans with those offered to other state workers and require all public employees to be moved from the highest-cost “platinum” health plans to less-expensive “gold” ones.

Sweeney argues those changes will save the state billions and stave off a financial “death spiral” where the costs for employee pensions and health care overwhelm the budget.

Union leaders argue that Sweeney’s proposed changes won’t solve the state’s pension problems and the health care changes would just shift more of the financial burden onto workers without reducing the actual costs. They argue Murphy’s proposal to raise taxes on the millionaires, reforming tax incentives and negotiating changes in health benefits is the better route.

“This is about all of us together fighting for our families!” said Hetty Rosenstein, state director of the CWA at the rally, which also drew leaders and advocates from several state progressive groups.

Vermont Sen. Bernie Sanders, who is among the leading contenders for the Democratic presidential nomination, tweeted his support for the protest on Wednesday and his campaign’s political director spoke on his behalf.

Analilia Mejia, who is the former executive director of the progressive New Jersey Working Families Alliance, said legislators would be held accountable for their choices.

“They will be judged. They will be recalled. There will be penalties to pay if they don’t answer right to the question of whose side are they on?” Mejia said.

There were also warnings about a possible government shutdown next month if the governor and lawmakers are unable to negotiate a budget agreement. Union leaders urged their members to pressure their elected lawmakers to back Murphy or face the consequences this fall when Assembly seats are up for grabs.

"Call your legislator and let them know four months from now unless they fight for you," said NJ AFL-CIO President Charles Wowkanech.

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